What are the benefits of using a CSP?
What are the benefits of using a Certified Service Provider?
Answer: One time and place: A seller contracting with a CSP can go through the CSP to register and to update registration data with all Member states.
A volunteer seller (see what is a volunteer seller) that contracts with a CSP has the following benefits:
a. Free Monthly Return Processing – The volunteer seller that contracts with a CSP is not charged a filing fee from the CSP. The CSP receives compensation from the state.
b. Audit liaison – The CSP must provide the Member states with transactional data supporting the monthly remittances for volunteer sellers. During an audit of volunteer seller the Member states must go through the CSP during the audit, rather than contacting the seller directly. Audit questions are presented to the CSP. The CSP then reaches out to the volunteer seller to collect any additional supporting documentation required for the audit. A seller that is not a volunteer will be contacted directly by the state.
c. Liability Relief – Sellers that contract with a CSP will not be assessed for errors resulting from incorrect tax calculation resulting from the seller or the CSP relying on erroneous data a member state provided on tax rates, boundaries, taxing jurisdictions or incorrect data on the library section of the state’s taxability matrix.